Our Blog

Share this article:

“On the Cheap” AML Cost U.S. Bank $613 Million

by | Feb 16, 2018

Credit: Alex Bychkov and Megan Mahaffey

Enhanced due-diligence on higher risk customers is just one part of an effective Anti-Money Laundering (“AML”) compliance program. In February, federal regulators and the U.S. Attorney’s Office of the Southern District of New York announced $613 million in penalties against U.S. Bankcorp for knowingly failing to maintain a robust AML compliance program. Their release states that U.S. Bankcorp “operated the program ‘on the cheap’ by restricting headcount and other compliance resources.”

Enhanced Due Diligence for AML

As part of the AML regulations, financial institutions are required to perform effective customer due diligence to understand their customers and their transactions to combat illicit financial activity such as money laundering, fraud, and tax evasion. Effective AML programs must not only verify the identities of their customers and beneficial owners, but they must also assess a risk score to those customers. Those customers who pose greater risk must undergo greater scrutiny. Third party investigators can help financial firms to understand their higher-risk customers by independently obtaining the following information and more:

  • Personal Background and History
  • Company History and Ownership
  • Corporate Records and Affiliations
  • Government, Compliance, and Regulatory Agency
  • Tax Liens and Judgment Searches
  • Court History
  • Derogatory Social and Online Media
  • References in Offshore Leaks Databases (e.g., Panama Papers)

Gryphon Strategies Is a Leader in Enhanced Due Diligence

With nearly 30 years of experience in due diligence and investigations, Gryphon Strategies is a leader in assessing risk and facilitating investment-related decisions. Our investigative research is designed to uncover information relevant to your investment, and we ensure each investigation is tailored to your risk profile and requirements. Our team can handle both comprehensive due diligence and high volume domestic and international background investigations to meet your compliance needs.

Email us for a consultation or learn more here.